24 hours ago, after the stock market had staged what had appeared
to be a bullish reversal I was of the opinion that the market
would simply consolidate in a large trading range,for the next few weeks
as to cause no further damage
until the Federal Reserve Meeting on Dec.19.
Well two things have happened today
to markedly changed my opinion on that careful assumption.
1. Today's very weak jobs number report, already reflecting slowdown,with no new wage pressures seen.
2. The unexpected, perhaps blindsided large drop in the stock market today.
I would say that a majority of traders did not see this immediate drop coming today.
They thought they might have had some breathing room, perhaps to catch up on some sleep.
Being caught blindsided and flatfooted,
on the wrong side of this market can cost anyone dearly.
The early rally to SPX 2709 on 12/7/18
tells me that if SPX 2621 is broken to the downside
that the market will be heading down to test the 2018 Lows at S+P 2532.
The Market is
LEADING the FED..
.....not the other way around. .
There will be no increase in rates at their 12/19 meeting.
The MARKET has already determined that this week.
So there is NOT going to be a neat tidy wait for the FED meeting,
Things are going to get very messy,very quickly,as they already have.
And make no mistake,
the FED will bear the burden and the blame,
by economists, politicians, and citizens a like when the forces
of economic slow down hit this country hard in 2019.
The ill wind released on the market this week,
has the potential to cause a long protracted economic slowdown/ downturn,
that few could have imagined or foreseen, only a few short months ago.
THE_UNWIND
12/7/18
NEW YORK
to be a bullish reversal I was of the opinion that the market
would simply consolidate in a large trading range,for the next few weeks
as to cause no further damage
until the Federal Reserve Meeting on Dec.19.
Well two things have happened today
to markedly changed my opinion on that careful assumption.
1. Today's very weak jobs number report, already reflecting slowdown,with no new wage pressures seen.
2. The unexpected, perhaps blindsided large drop in the stock market today.
I would say that a majority of traders did not see this immediate drop coming today.
They thought they might have had some breathing room, perhaps to catch up on some sleep.
Being caught blindsided and flatfooted,
on the wrong side of this market can cost anyone dearly.
The early rally to SPX 2709 on 12/7/18
tells me that if SPX 2621 is broken to the downside
that the market will be heading down to test the 2018 Lows at S+P 2532.
The Market is
LEADING the FED..
.....not the other way around. .
There will be no increase in rates at their 12/19 meeting.
The MARKET has already determined that this week.
So there is NOT going to be a neat tidy wait for the FED meeting,
Things are going to get very messy,very quickly,as they already have.
And make no mistake,
the FED will bear the burden and the blame,
by economists, politicians, and citizens a like when the forces
of economic slow down hit this country hard in 2019.
The ill wind released on the market this week,
has the potential to cause a long protracted economic slowdown/ downturn,
that few could have imagined or foreseen, only a few short months ago.
THE_UNWIND
12/7/18
NEW YORK